Due to the increased number of unlicensed digital lending apps where man unsuspecting Ugandans have been scammed and lost money in billions of shillings, Bank of Uganda has directed the digital lenders to carry out due diligence through holding valid licenses and obtain confirmations from Uganda Microfinance Regulatory Authority.
In the letter, the Director National Payment Systems at Bank of Uganda Mackay Aomu noted that section 6 of the anti-money laundering act 2013 as amended and the regulation 18 of the anti-money laundering regulation 2015 require an accountable person to undertake customer due diligence measures before establishing any business relationship.
Editor:msserwanga@gmail.com
Bank of Uganda directed the digital lenders to carry out due diligence through holding valid licenses and obtain confirmations from Uganda Microfinance Regulatory Authority.
Cyber Security expert Jerome Okot explains how digital money lenders beat security to access and capture sensitive financial information from vulnerable Ugandans.
Okot says users should refrain from opening malicious apps and stressed the need to reduce the use of unregulated apps accompanied with provision of multiple access to your financial information.
“Not every money lending app that you come across is regulated, make due diligence before you give in your personal information and access a genuine credit” Okot said
